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Bulls take shot in Accretive Health

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Fast-money traders were looking for Accretive Health to rise by the end of this week, but late news yesterday is already providing headwinds.

About 2,000 November 10 calls were bought yesterday for $0.14 to $0.35, optionMONSTER's Heat Seeker tracking system shows. This is clearly new activity, as open interest in the strike was just 63 contracts before the session began.

These long calls lock in a $10 purchase price for the stock no matter how far it might climb. But they will expire worthless by tomorrow's close if shares remain below that level. (See our Education section)

AH rose 2.76 percent yesterday to close at $9.49, a penny off its session high. But the stock fell about 4 percent to $8.90 after the bell when the health-care management company announced that co-founder and former CEO Mary Tolan is stepping down as chairman.

Total option volume in the name topped 4,100 yesterday, 11 times its daily average for the last month. Calls accounted for 63 percent of those contracts.

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